Proposed 2021-2022 state budget: Here’s what credit unions need to know

On Tuesday, Gov. Andrew Cuomo delivered his executive budget address detailing his proposals for the 2021-2022 fiscal year. The New York Credit Union Association has reviewed and summarized the information available.

Cuomo’s State of the State address contained the following:

Establish the New York BankTech Innovation Network: This would build upon the January 2020 provision to provide seed funding for New York’s CDFI Fund. The DFS-led initiative would develop and disseminate a package of practical, turnkey tools that credit unions and community and regional banks can use to help acquire and implement emerging technologies.

The Executive Budget contains the following public policy proposals:

Codification of remote notarization into law: Gov. Cuomo issued an Executive Order to permit remote notarization during the COVID-19 crisis. The governor is proposing to codify into law the ability for notaries to rely on approved technologies to verify identity in order to notarize documents and to exercise notarial authority remotely. If this legislative proposal is approved, it would take effect immediately.

Mortgage forbearance: Gov. Cuomo is proposing to extend the covered period for residential mortgage relief through at least Dec. 31, 2021, or until the Executive Orders issued during the COVID-19 pandemic are no longer in effect.

Allow SONYMA to purchase mortgages from not-for-profit organizations or community development financial institutions: This proposal would expand the State of New York Mortgage Agency’s (SONYMA) authority to purchase mortgages from non-for-profit organizations or CDFIs.

Extend certain sales tax exemptions related to the Dodd-Frank Protection Act for three years: Certain financial institutions were required under the Dodd-Frank Wall Street Reform and Consumer Protection Act to create subsidiaries and then transfer property or services to those subsidiaries. This bill would extend the exemption for an additional three years to cover sales made on or before June 30, 2024, or made on or before June 30, 2027, pursuant to binding contracts entered into on or before June 30, 2024.

Data privacy and consumer bill of rights: This legislative proposal would mandate that companies who control or process personal information of one hundred thousand consumers or more or derives over fifty percent of gross revenue from the sale, control, or processing of personal information would only collect personal information relevant to the purpose. The legislation will also create a Consumer Data Privacy Bill of Rights and provide outreach and education about these rights.

Cannabis Regulation and Taxation Act: This bill would create and amend existing laws to legalize adult-use cannabis, consolidate governance of all forms of cannabis and create a regulatory structure to oversee the licensure, cultivation, production, distribution, sale and taxation of cannabis within New York State.

The final New York State Budget is due by April 1. As budget legislation is released, the Association will continue to analyze the bills, update you with all relevant details and advocate on public policy issues of interest to the credit union movement. Should credit unions have any questions in the meantime, please do not hesitate to reach out.

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